Question: What do we usually use for risk - free rate in equity valuation? 3 - month Treasury bill yield 2 - year Treasury note yield

What do we usually use for risk-free rate in equity valuation?
3-month Treasury bill yield
2-year Treasury note yield
10-year Treasury bond yield
Prime rate
What do we usually use for risk-free rate in equity valuation?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

plz help me draw a curve. 7:187 SP20: iz sp20: BUS1-170 Sec 04 - Fund of Finance Online research: do a search for the "the Treasury Yield Curve and study the examples that come up. What are its axes?...

Q:

Current Quick Operating margin Profit margin Return on total assets (ROA) Return on common equity (ROE) Return on invested capital (ROIC) Price/Earnings (P/E) Market Capitalization Shares outstanding...

Q:

Why did US Quantitative Easing 2 (operation twist) focus on the yield on the 10 year US Treasury Note? Group of answer choices It is the benchmark for 30 year mortgages It is the most liquid treasury...

Q:

Online research: do a search for the the Treasury Yield Curve and study the examples that come up. What are its axes of the graph? What data makes up the points that define the curve? What does it...

Q:

20 The US 10 Year Treasury Note Yield a. Is currently trending at record low levels b. recently traded higher than the long bond yleld (30 Year Treasury Bond) C. is currently less than the 3 month...

Q:

PLEASE SHOW WORK! the following price quotations appearing in recent Wall Street Journal for US Treasury Bill/Note in answeringQ's1-6: (true YTM) Asked Please use Discount Maturity Date Yield' May 22...

Q:

Question one. Colfax Inc. manufactures high-end ice cream makers to sell to companies across the globe. The following market data on Colfax are current and available: ? Debt - 130,000 bonds...

Q:

Section 1. Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus, the bid...

Q:

Colfax Inc. manufactures high-end ice cream makers to sell to companies across the globe. The following market data on Colfax are current and available: ? Debt - 130,000 bonds outstanding, selling...

Q:

assume all my current answers in yellow cells are incorrect. thanks guys 11 2 Excel Assignment 4 3. A beverage company that currently sells grape juice is considering adding apple juice to its...

Q:

You have opened a futures account with a cash deposit of $10,000.00. You decide to sell 8 October contracts of bean meal at 305.4. Contract specs are as follows: CONTRACT UNIT 100 TONS QUOTE UNITS...

Q:

1. Determine la fuerza en cada elemento de la armadura Howe para techo que se muestra en la figura. Establezca si los elementos estn en tensin o en compresin. 600 lb 300 lb AQ 600 lb C L-SA-S D E 600...

Q:

One way of perfection by possession of the collateral is through a field warehousing arrangement. Group startsTrue or False

Q:

Aero Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet the demand for a new line of solar-charged motorcycles (who wants to ride on a cloudy day anyway?) The...